THE IMPACT OF MIGRATION ON REGIONAL WAGE INEQUALITY: A SEMIPARAMETRIC APPROACH

According to economic theory, regional migration is a primary mechanism through which regional wage convergence is predicted to occur. However, this does not necessarily imply that regional migration has an equalizing effect on regional inequality. Despite considerable literatures on regional migration and regional wage inequality, little attention has focused on the relationship between the two. This paper investigates one of the primary mechanisms through which migration affects individual region's wage distributions. It adopts a semiparametric procedure to examine how the regional wage distributions in Great Britain have changed as a result of migration using British Household Panel Survey data for 1991–2007.     

Local Government Portfolios and Regional Growth: Some Combined Dynamic CGE/Optimal Control Results

A theoretical policy model is presented that combines regional dynamic CGE modeling and optimal control to explore the role of local government taxation and expenditure in enhancing regional growth. It contributes to the regional CGE literature by explicitly solving for an optimal policy and augments earlier regional optimal control models by adding endogenous optimization of producer and consumer agents in response to endogenously determined prices. Results of three policy regimes are analyzed in terms of gains in the objective function, impacts on income inequality, and sensitivity to model parameterization.     

Scales of regional income disparities in the USA, 1955 2003

This article examines multiple dimensions of regional per capitaincome disparities in the USA between 1955 and 2003 with a particularfocus on scalar effects. It combines various exploratory analyticaltools of spatial disparities, including inequality indices,mobility indices, kernel density estimation, spatial autocorrelationstatistics and scale variances, to analyse regional averageper capita income distributions at multiple spatial scales,ranging from counties to multi-state regions. The analysis revealspreviously unrecognised systematic patterns of cross-scalardynamics, whereby spatial income disparities are increasinglymore pronounced at smaller scales in the last few decades.     

SOCIAL POLICY AS REGIONAL POLICY: MARKET AND NONMARKET FACTORS DETERMINING REGIONAL INEQUALITY

ABSTRACT We decompose the recent changes in regional inequality in Brazil into its components, highlighting the role of spatially blind social programs. We aggregate personal income micro data to the state level, differentiating nine income sources, and assess the role of these components in the observed changes in regional inequality indicators. The main results indicate that the largest part of the recent reduction in regional inequality is related to the dynamics of the market‐related labor income, with manufacturing and services favoring deconcentration. Labor income in agriculture, retirement and pensions, and property rents and other sources favored concentration. The social programs Bolsa Família and Benefícios de Prestação Continuada are responsible for more than 24 percent of the reduction in inequality, although they account for less than 1.7 percent of the disposable household income. Such positive impact on regional concentration is impressive, since the goals of the programs are clearly nonspatial.     

Migration and regional inequality: changing characteristics of China’s economic inequality

Scholars studying economic inequality in China have maintained that regional inequality and economic divergence across provinces have steadily increased over the past 30 years. New studies have shown that this trend is a statistical aberration; calculations show that instead of quickly and sharply rising, regional inequality has actually decreased, and most recently, remained stable. Our study suggests that China’s unique migratory regime is crucial to understanding these findings. We conduct a counterfactual simulation to demonstrate how migration and remittances have mitigated income inequality across provinces in order to show that without these processes, we would have seen more of a rise in interprovincial income inequality. We conclude by arguing that inequality in China is still increasing, but it is changing and becoming less place-based. As regional inequality decreases, there are signs that point to the increasing importance of interpersonal inequality.     

基于不同区划系统的中国区域经济差异分解研究

基于不同区划系统,采用锡尔系数分解方法来定量测度中国区域经济差异。首先,基于省级空间单元,通过一阶段锡尔系数分析1978年以来中国区域差异的格局及其动态演变;然后,分别基于三大地带--省(直辖市、自治区)--地(市、区、自治州)或者县(市辖区、县级市、县)这两类三级结构的地域行政单元,运用二阶段嵌套锡尔系数分解方法,将差异进一步分解至省内差异水平上,由此揭示出不同于省际分析的区域经济差异特征:省内差异是全国总体差异的重要组分,对于总体差异的影响较地带间差异和省间差异显著得多。     

Estimates of Income and Income Inequality in the United States and in Each of the Fifty States: 1988–1999

Abstract Estimates of income levels and income inequality in the United States in 1988, 1995, and 1999 are presented based on a dataset created by a statistical match of Internal Revenue Service and decennial Census data. In addition, estimates are presented of income levels and income distribution in each of the fifty states of the United States during those same years. Trends in national and regional income inequality and income levels over the period are analyzed also.     

Regional inequality in China during its rise as a giant exporter: A value chain analysis

China's exports success has implications for regional income inequality, because most of its export products are manufactured in the coastal zone. We propose a value chain-based accounting framework to quantify the contributions of exports to regional income inequality. We employ newly developed interregional input–output tables for China, which distinguish between processing export activities and ordinary export activities. We analyze the period 2002–2012, the decade during which China became the “Factory of the World.” We find that an RMB of processing exports contributed much more to regional inequality than an RMB of ordinary exports or domestic final demand. Still, changes in regional inequality (increasing in 2002–2007 and decreasing between 2007 and 2012) are much more due to rising ordinary exports in the first subperiod and the growth of domestic final demand coupled with changes in the configuration of value chains in the second.     

Global Restructuring,the Welfare State and Urban Programmes: Federal Policies and Inequality within Australian Cities

This paper is a prelude to a theme issue in 2003 on Australasian city and regional problems and policies. It considers the impact of economic restructuring on the level of inequality and disadvantage within Australian cities. Evidence is presented that Australian cities have become more unequal over the past two decades and this greater level of inequality has found concrete expression within the built environment. These patterns of inequality are distinct to Australia. It is argued that the Australian Government's reliance on tightly targeted income support policies and market-based solutions to economic disadvantage has contributed greatly to the concentration of low income and vulnerable households within certain sections of Australian cities.     

On the ‘Arab Inequality Puzzle’: The Case of Egypt

This article surveys and discusses prominent protagonists of the debate on socio-economic inequality in the Arab region, with a special focus on the World Bank and Egypt. According to official data, the region holds remarkably low Gini coefficients in a context of declining inequality. This contradicts the popular perception of high social inequality as a major cause of regional protests since the Arab Spring; hence the reference to a ‘puzzle’ in mainstream literature. The debate about the reality of social inequality in the region has developed since 2011 — particularly in regard to Egypt, where income and consumption data are periodically collected by means of household surveys. Inequality measures based on this method alone, while income taxation data are inaccessible, are highly questionable and conflict with various observations and calculations based on other indicators such as national accounts, executive income or house prices. Yet, the World Bank upholds official inequality findings in portraying the Arab upheaval as the revolt of a ‘middle class’ that aspires to greater business freedom, in consonance with the neoliberal worldview.     

Regional income inequality in France 1860–1954: Methods and findings

This paper explores regional (département or NUTS3) income inequality in France between 1860 and 1954. To this end we first document the existing evidence, evaluate the estimation methods and findings, assess the suitability of each approach and address potential concerns. We then present our own subnational estimates of per-capita income, derived following Geary and Stark. Overall, we find that indirect estimation (or top-down) methods provide somewhat differing results, thereby calling into question the validity of some of these approaches. Our estimates, meanwhile, appear to fit reasonably well with direct estimations (or bottom-up) of value-added and income and provide evidence in support of a decline in regional inequality over the period of study.     

Convergence Is Not Equality

Despite the fall in global income inequality in the last two decades, levels of living among individuals in the world are still very different and are likely to remain so for a very long time. The uneven rate of decline in inequality and growth volatility in commodity‐dependent countries suggest that there is no reason to believe that global inequality will continue to fall until it reaches acceptably low levels. Global disparities in incomes and welfare, especially in social protection, are at the heart of the problem of migration and populism in Western democracies in recent years. They bring out in bold relief the lack of fit between claims of global convergence and people's perceptions on incomes and well‐being between the global North and South. In this regard, it is more realistic to talk about ‘multiple geographies of 21^st century development’ than a ‘one world’ or single geography of global development. Issues of power, and the way global and national relationships and rules allocate advantages and disadvantages, or promote convergence and divergence, between and within countries, need to be front and centre in the discussion on global convergence.     

A NOTE ON THE DIFFERENTIAL REGIONAL EFFECTS OF INCOME INEQUALITY: EMPIRICAL EVIDENCE USING U.S. COUNTY‐LEVEL DATA

This note examines the correlation between income inequality and economic growth using a panel of income distribution data for 3,109 counties of the U.S. Using the System Generalized Method of Moments (GMM) approach, we find that for the entire sample of 3,109 counties, an increase in a county's level of inequality has a significant negative relationship with future economic growth. In reality, however, the magnitude, sign, and significance of this relationship is not necessarily uniform across all regions of the U.S., motivating the need to examine regional differentials in the relationship between inequality and growth. Consequently, we split our dataset into metropolitan and nonmetropolitan counties, into the eight Bureau of Economic Analysis regions, and into regions of different political affiliation and economic‐dependence typology. Our results show considerable heterogeneity in the relationship between inequality and growth across these regions.     

A Time Series Analysis of Regional Income Inequalities and Migration in Japan, 1955–1985

This study tests the neoclassical concept of interregional migration in post–World War II Japan. The lead-lag relationship between net migration to a core area and regional income inequalities is examined by modeling an ARIMA transfer function. Until 1961, there was a rapid growth in net migration from the periphery to the core area that was accompanied by rapid divergence in regional income inequalities. Since then, migration to the core apparently has declined due to a convergence of regional income inequalities. The time series analysis indicates there has been short-run, as well as long-run, volatility in migration related to cyclical variations in economic performance in the core.     

EDUCATION AND INCOME INEQUALITY IN THE REGIONS OF THE EUROPEAN UNION*

ABSTRACT This paper provides an empirical study of the determinants of income inequality across regions of the EU. Using the European Community Household Panel dataset for 102 regions over the period 1995–2000, it analyses how microeconomic changes in human capital distribution affect income inequality for the population as a whole and for normally working people. The different static and dynamic panel data analyses conducted reveal that the relationship between income per capita and income inequality, as well as between a good human capital endowment and income inequality is positive. High levels of inequality in educational attainment are also associated with higher income inequality. The above results are robust to changes in the definition of income distribution and may be interpreted as a sign of the responsiveness of the EU labor market to differences in qualifications and skills. Other results indicate that population ageing, female participation in the labor force, urbanization, agriculture, and industry are negatively associated to income inequality, while unemployment and the presence of a strong financial sector positively affect inequality. Finally, income inequality is lower in social‐democratic welfare states, in Protestant areas, and in regions with Nordic family structures.     

20世纪30年代中国农业雇工收入地区差异研究

本文采用卜凯1929—1933年所做的中国农村调查数据,用基尼系数法计算了我国不同地区农业雇工平均收入水平及差距,并采用非参数的高斯核密度估计方法分析农业雇工收入分布情况及影响机制。研究表明:20世纪30年代农业雇工收入水平地区差异性客观存在但并未出现两极分化;农业雇工平均收入水平按地区发展状况呈阶梯状递减趋势,地区内部农业雇工收入差距与地区经济发达水平大体呈正U型发展态势;东、中、西部地区之间发展的不均衡性是导致全国农业雇工收入差距较大的重要因素。     

INCOME INEQUALITY,ECONOMIC GROWTH,AND THE DISTRIBUTION OF INCOME GAINS: EVIDENCE FROM THE U.S. STATES*

ABSTRACT This paper first investigates a relationship between economic growth and income inequality using U.S. states data, a state cost‐of‐living deflator, and nonlinearity. It then explores the distribution of income gains among different income groups. We find that the impact of inequality on growth is nonlinear. Lowering inequality or increasing it substantially reduces growth; thus stable inequality may be good for growth. Economic growth affects incomes of the poor, the middle‐income group, and the rich similarly with the elasticity of one. Education and labor market policies become important in promoting growth and improving income gains of the poor.     

Is there Really Divergence Across Turkish Provinces? Evidence From the Lagrange Multiplier Unit Root Tests

Using data on per capita income among 67 provinces in Turkey over the period 1975–2001, regional stochastic convergence is evaluated. This study employees the LM unit root test to endogenously determine the number and location of structural breaks for each province. On the contrary, convergence literature on Turkish provinces, both univariate and panel LM tests provide strong evidence for convergence except for the provinces of Bitlis and Erzurum when structural breaks are taken into account. Our empirical results are in accordance with the neoclassical model.     

INEQUALITY IN CITIES*

ABSTRACT Much of the inequality literature has focused on national inequality, but local inequality is also important. Crime rates are higher in more unequal cities; people in unequal cities are more likely to say that they are unhappy. There is a negative association between local inequality and the growth of city‐level income and population, once we control for the initial distribution of skills. High levels of mobility across cities mean that city‐level inequality should not be studied with the same analytical tools used to understand national inequality, and policy approaches need to reflect the urban context. Urban inequality reflects the choices of more and less skilled people to live together in particular areas. City‐level skill inequality can explain about one‐third of the variation in city‐level income inequality, while skill inequality is itself explained by historical schooling patterns and immigration. Local income also reflects the substantial differences in the returns to skill across, which are related to local industrial patterns.     

Spatial and social mobility

This paper analyzes the relationship between spatial mobility and social mobility. It develops a two‐skill‐type spatial equilibrium model of two regions with location preferences where each region consists of an urban area that is home to workplaces and residences and an exclusively residential suburban area. The paper demonstrates that relative regional social mobility is negatively correlated with segregation and inequality. In the model, segregation, income inequality, and social mobility are driven by differences between urban and residential areas in commuting cost differences between high‐skilled and low‐skilled workers, and also by the magnitude of taste heterogeneity.